China car sales slow as US bounces back

Car sales in China grew by only 2.5% last year as the government removed stimulus measures, while the US emerged to become the world’s fastest-growing car market, the Financial Times reported. Car and light truck sales in the US grew by 10%, but sales of 12.8 million units were still far below the 18.5 million sold in China. Analysts believe the slowdown in China sales was largely due to the withdrawal of tax incentives introduced in 2008; auto sales in China grew by 46% in 2009 and 32% in 2010. Foreign carmakers did better than average, with General Motors (GM.NYSE) posting a 8.3% rise, and Ford (F.NYSE) a 7% increase. Analysts believe the auto market will rebound this year, though likely not to 2009 and 2010 levels. “Continued growth of the urban middle class, along with continued investment in China’s transportation infrastructure, will continue to fuel demand growth for the foreseeable future,” said Bill Russo, head of Synergistics auto consultancy.

SIGN UP FOR THE NEWSLETTER

Email *

Yes, I would like to receive emails from China Economic Review. (You can unsubscribe anytime)

Constant Contact Use.

By submitting this form, you are consenting to receive marketing emails from: China Economic Review, Rm 1804, New Victory House, Sheung Wan, http://www.chinaeconomicreview.com. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

About China Economic Review

China Economic Review (CER) has been a dependably independent voice on trends and developments in the greater Chinese economy for a quarter century. Our coverage has won recognition from the Society of Publishers in Asia and is widely read by economists, business leaders, academics and students with an interest in one of the world’s most vibrant and complex developing markets.